Which of the following is NOT a characteristic of insurance contracts?

Insurance contracts are unique in several aspects that distinguish them from regular contracts. One key characteristic of insurance contracts is that they are generally not negotiable. This means that the terms and conditions of an insurance policy are typically set by the insurer and presented to the policyholder on a take-it-or-leave-it basis.

In essence, the insurer has most of the bargaining power, leading to a contract that cannot be modified at will by the policyholder. This aligns with the notion of adhesion, which refers to contracts drafted by one party (the insurer) in a manner that the other party (the insured) must accept without modification.

Other characteristics of insurance contracts include being personal, indicating that they are specific to the individual or entity purchasing the insurance, and being conditional, meaning that certain conditions must be met for the contract to be enforced, such as the occurrence of a covered event.

Understanding these principles helps clarify the nature of insurance contracts and how they function within the realm of risk management.